Disability Insurance Helps Protect Your Future. As every paycheck comes it you have to rely on it in order to pay bills. Disability insurance can help protect your paycheck. If you’re totally disabled due to sickness or injury and can’t work, disability insurance offers coverage that can provide money to help pay your mortgage, rent, car loans, and other monthly expenses. It may also help prevent using your retirement or education savings if you can’t work. Let’s talk.
There are two main types of disability insurance — short-term and long-term coverage. Both replace a portion of your monthly base salary up to a cap, such as $10,000, during a disability. Some long-term policies pay for additional services, such as training to return to the workforce.
Consider buying a policy if you don’t have any or enough disability coverage at work or are self-employed. Employer-sponsored disability insurance usually pays only a portion of your base salary, up to a cap. It’s a good idea to supplement that coverage if your salary far exceeds the cap or you depend on bonuses or commissions.